Replies to post #98576 on Intel Corp (INTC)

[inex]

Here is the danger that I see in ARMH...

As a chip designer that licenses its designs, ARM could license directly to Dell, HP, Lenovo, Acer who then could use a foundry to produce chips and put a serious damper in Intel's margins. As long as Intel is able to design processors that are significantly faster than ARM, this would always allow Intel a much higher margin and would force them to cede the low end market, which, they've done in the past. However, because ARM allows companies like NVidia to ValueAdd, unless Intel greatly improves it's Graphics, NVidia's greater GPU capagilities will begin to erode whatever performance differences Intel's CPU might have. This would put pressure on margins.

I think that the pie will inevitably be large enough for everyone for quite some time, but, ARM's business model is a very interesting one to me. I don't see it requiring near as much overhead as Intel's. ARM doesn't need anywhere near the marketing and sales force that Intel needs.

I think at the very least, ARM's popularity has signalled a paradigm shift, much like Android has done for Cell Phones.

JMHO

[smooth2o]

Right, but as I indicated, these are different times and different markets. The only one I am concerned with at the moment is the market that ARM has. It is the entrenched incumbent. It was easy to blow Transmeta out of the market. Also, AMD. At least compared to ARM.

That said, I wouldn't want to be in ARMs shoes in the next few years. For all the time I have intimately known Intel they haven't been very wrong about their process technology or designs. Between one to two years, they will be sitting on a powder keg of high end product. I would assume that the products destined for the smart phone market, et al, can't be made to demand.

That said, you don't go frontal on a market unless you have a 10:1 advantage (between availability, speed, features, cost and everything else you can count) and I very much doubt they don't know what they have...

Smooth

[mas]

I predict in a few years they will sorely wish they hadn't
gone so far out of their way to wave a red cape before the
bull.

http://blogs.wsj.com/tech-europe/2010/11/19/intel-microprocessor-business-doomed-claims-arm-co-founder/ using some very simplistic inane thinking !


A spokesman for Intel played down Dr. Hauser’s comments. “We’re not sure why the ARM folks have become so vocal lately as everyone agrees that billions of devices are coming online, and there’s room for many to be successful. We’ll just have to see how things play out,” an official said via email.